BIRMINGHAM, Alabama -- The Birmingham Board of Education learned tonight at its first of two budget hearings that a proposed 3-mill property tax increase won't be included on the ballot this fall as previously planned, meaning the district won't have any additional funds to expand programs such as pre-kindergarten.

Superintendent Craig Witherspoon informed the board that the proposed 3 mill increase, presented in March, would not be included with Birmingham Mayor William Bell's proposal for a $150 million bond issue that would pay for capital projects throughout the city.

The bond issue will still appear on the ballot on Oct. 9, but Witherspoon said his proposed 3 mill increase -- which he projected would raise $9 million a year -- will not go before voters anytime soon.

"At this point, it's too late to get that on (the ballot)," Witherspoon told board members tonight.

"There were other distractions."

Almost immediately after Witherspoon announced his plan to ask Bell to add a millage increase for education to the ballot, the state launched an investigation into board governance and finances. That led to a state takeover of the district's finances, and now an education accrediting agency is threatening the district's accreditation if it doesn't respond to concerns raised about the board's governance.

Witherspoon did not elaborate on the reasons the property tax proposal isn't moving forward.

In June, Birmingham officials said the inclusion of the property tax vote with the city bond issue was in doubt. Property tax collection is a county function, so the county must call for any increase, city officials said.

Even without that extra money, the district will end fiscal 2013 in the black, and with some money in a reserve fund, although not enough to meet a state requirement that districts keep at least one month worth of operating expenses in reserves.

Arthur Watts, chief financial officer for Birmingham city schools, said the district would end next fiscal year with about $6.1 million in reserves. He said he expects to close out this fiscal year on Sept. 30 with about $2 million in reserves.

In 2013, the district expects to bring in $196.9 million in revenues to its general fund, and is projecting expenditures of $192.8 million. The majority of the expenditures -- $110.4 million -- will pay for instructional services, including the salaries and benefits of teachers.

Because of a decline in enrollment of 790 students last year -- school systems are funded by the state based on the previous year's enrollment -- Birmingham will lose funding for about 41 teachers, five principals, two assistant principals, 2.5 counselors and nearly four librarians.

Parent Jerry Tate, vice president of the Birmingham Council of PTAs, asked Witherspoon why there is no extra funding for the popular pre-k program when research shows how vitally important it is to student achievement.

"Why not increase funds and pull funds from other places?" he asked.

Witherspoon said he would love to expand the program but the money just doesn't exist.

"Alabama and North Carolina have the best pre-k program in the country," he said, referring to the two states consistently being named the best programs by several national groups. "In North Carolina, they pay for it through the lottery. We don't have that in Alabama."

Despite being in proration, or across-the-board state budget cuts, for several years and having declining enrollment that means a loss in state funding, Birmingham has increased the number of pre-k classrooms by "six or seven" in the last three years, he said.

Board member Emanuel Ford said he is tired of the school district getting blamed for loss of enrollment year after year.

"We can build schools all day long; that's not the problem," he said. "If you don't take care of the neighborhoods, why would anyone want to live there? If the city doesn't step up to the plate and do something with those neighborhoods, we're going to keep losing families and the district is going to keep losing students."